Paul Fletcher (Bradfield, Liberal Party, Shadow Minister for Government Services and the Digital Economy) Share this | Link to this | Hansard source

I rise to speak on the Universities Accord (Student Support and Other Measures) Bill 2024, a bill that amends the Higher Education Support Act and gives effect to several measures from the Australian Universities Accord final report. These measures include: changing the way HELP indexation is calculated, to use the lower of either the consumer price index, the CPI, or the wage price index, the WPI, backdated to the 2023 and 2024 indexation years; the introduction of a Commonwealth prac payment for teaching, nursing, midwifery and social work students; FEE-FREE Uni Ready courses for students to undertake preparatory courses to prepare for university studies; and requiring universities to provide 40 per cent of the student services and amenities fee to student led organisations.

While the coalition will not stand in the way of this bill in the House, there are many unanswered questions, which is why it is important that there be an inquiry into this bill in the other place. We hold a range of concerns about this bill, and that inquiry will allow an opportunity to fully interrogate this bill. The coalition welcomes any initiative to combat escalating student debt, which has occurred on this government's watch. However, the claims that the government is wiping $3 billion in student debt are misleading.

Let's remember the damage this government has caused. In 2023, indexation was at its highest level since 1990, 7.1 per cent, increasing the average student loan of $26,500 by more than $1,800. This year, indexation was 4.7 per cent, increasing the average student loan by around $1,250. In just these two years alone, student debt balances have increased on average by $4,000. In contrast, under the coalition, indexation averaged 1.7 per cent per year. The proposal to change HELP indexation to the lower of the wage price index or the consumer price index would, if passed, still result in student debts increasing by 11.1 per cent since June 2022. In the meantime, students have become one of the hardest hit groups when it comes to the cost-of-living crisis gripping our nation.

We know that Australians are paying 20 per cent more personal income tax while real wages have dropped by nine per cent. We know that the price of everyday essentials is going up: food is up by 11 per cent, health costs are up by 11 per cent, education is up by 11 per cent, housing is up by 15 per cent, rent is up by 15 per cent, electricity is up by 22 per cent and gas has seen a staggering 25 per cent increase.

And, while this government has talked big on reducing student HECS debts, this bill does not include a date by which student debt credits will be applied or refunds will be paid. In other words, despite all of the rhetoric, students don't know when that HECS relief will be credited to their accounts or land in their bank accounts. While the bill sets the formula for the calculation methods, the explanatory memorandum and the minister's speech do not offer any further detail as to when credits will be applied. This is a significant oversight, given the government's sweeping claims about this being a measure that will ease financial pressures on Australians.

The other big unknown is how much money will be paid as a refund. Most of the refunds, in fact, will end up as a credit against a HECS loan account and may very well be eaten up by future rises in that balance as a result of indexation, meaning that there will be very little actual cost-of-living relief to many of the purported beneficiaries.

Let me turn to the issue of prac payments. Students studying teaching, nursing, midwifery or social work work hard. Student teachers do around 80 days of work placement as part of their university studies, student nurses do around 800 hours, midwifery students do around 1,300 hours, and social workers do 1,000 hours. Skills shortages exist across these sectors and are particularly acute in regional areas. The coalition recognises all of these realities, but we cannot avoid stating an obvious problem with this bill: it fails to provide any detail on how students will be eligible, means tested or paid.

The Australian Universities Accord review noted that students who undertake work placement as part of their course studies can face financial constraints when they need to cease their part-time employment to do their work placements. Recommendation 14 in the final report is:

… the Australian Government work with tertiary education providers, state and territory governments, industry, business and unions to introduce financial support for unpaid work placements. This should include funding by governments for the nursing, care and teaching professions, and funding by employers generally (public and private) for other fields.

But, in rolling out this measure, there appears to have been no consultation with state and territory governments or industry about sharing the cost of the measure. This is despite the fact that it will be the states and territories which will derive an obvious public policy benefit from incoming teachers, nurses, midwives and social workers. There certainly has been no consultation with the education sector about the implementation of the payment.

Despite the payment description, the amount will be benchmarked to the 'single' rate of Austudy at $319.50 per week, which will be taxed. It also will not be delivered via Centrelink but through a so-called grant bucket, from which the universities or higher education providers will have to seek payments. Whilst it's not in this bill, the government confirmed during budget estimates that eligible students will face a means test that will require them to be eligible for an income support payment and to meet a need-to-work requirement. Students will also need to have worked for a minimum of 15 hours per week for the previous four weeks before applying for the payment. This is a concerning omission which should have been more clearly outlined in the legislation, rather than being hidden in the guidelines.

It's also worth noting that, since the government announced this measure, veterinary students have raised concerns that they have been excluded. They undertake placements of around 2,000 hours. Psychology students have also put their hands up. They notch around 1,500 hours in placements. It is important for these students to understand why they've been left out when they are also acquiring skills that will be in high demand in the workplace. Students have also expressed disappointment over delays, with the new payment not being set to start until 1 July 2025, halfway through the next school and university year. The government needs to explain the reason for this. Universities remain in the dark when it comes to the detail they require.

This bill also includes funding for fee-free courses, which currently exist and are currently known as 'enabling places'. This appears to be more of a rebadging exercise than anything else. Enabling courses provide an alternative pathway into university for people who need to further their skills before entering higher education. It might be students who have not completed year 12, did not achieve the marks required for entry to university or are kickstarting their studies at a mature age. These courses prepare them for university study by providing a range of skills from preparatory essay writing to maths and computer skills. The course range is very diverse.

Students study, on average, 10 hours per week over a 16-week period. In 2022 around 25,000 students studied in enabling course. Around 88 per cent of these undertook their studies in a Commonwealth-supported place with no student contribution applied—meaning it was completely free to the student. Students can study them right now and at no cost. We await further details as to how these courses will be delivered.

This bill will also deliver the government's 2024-25 budget measure and mandate a minimum of 40 per cent of the student services and amenities fee revenue be directed to student-led organisations, including student associations, student unions and student guilds. Students studying at university or with a higher education provider pay what is known as a student services and amenities fee. It is set to a maximum amount each year—this year it sits $351—and is collected by universities to provide non-academic support. This includes help with housing, health and welfare, career advice, the provision of library or study areas, financial advice, legal services, and providing food and drinks. In 2022 more than $257 million was collected through these fees. The Accord report noted that while universities have discretion on how they use these funds—as long as they use them for the intended purpose—it is a financial source that student unions rely on heavily. The coalition remains deeply concerned that this bill lacks any measures that require transparency over how unions, guilds and associations use this funding.

I close by noting that while the intent behind the Universities Accord (Student Support and Other Measures) Bill 2024 is to ease the burden on students and address critical needs within the education sector, the coalition has a range of concerns which are noted in the second reading amendment in my name which I now move:

That all words after "That" be omitted with a view to substituting the following words:

"whilst not declining to give the bill a second reading, the House notes that:

(1) the Government's economic mismanagement and high inflation has resulted in escalating student debt for some 3 million Australians with a HELP (Higher Education Loan Program) loan;

(2) the proposal to change HELP indexation to the lower of the wage price index or the consumer price index would still result in student debts increasing by 11.1 per cent since June 2022, with no date by which student debt credits will be applied or refunds paid;

(3) whether it is student debt, housing or paying bills, Australians continue to suffer acute cost-of living pain under this Government;

(4) the Government has failed to detail eligibility criteria for the Commonwealth Prac Payments or how students will receive those payments, noting that students studying in other areas of workforce shortage such as occupational therapy, psychology and veterinary studies have been excluded from the scheme;

(5) the Government's decision to mandate 40 per cent of the Student Services and Amenities Fee revenue be directed to student led organisations, including student unions, associations and guilds, lacks any transparency measures to ensure money is spent on services which support student welfare; and

(6) the bill has been referred to the Senate Education and Employment Legislation Committee for inquiry to report by 3 October 2024".

The government's headline-grabbing announcements, from HELP indexation changes to Commonwealth Prac Payments, may sound promising, but look beneath the surface and it's a very different story. At a time when the university sector is in turmoil over this mismanagement of international students, including the discriminatory treatment of regional and smaller universities, transparency and accountability are critical. The opposition looks forward to obtaining further detail through the inquiry to be conducted in the other place.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Is the amendment seconded?

James Stevens (Sturt, Liberal Party, Shadow Assistant Minister for Government Waste Reduction) Share this | Link to this | Hansard source

I second the amendment and reserve my right to speak.

Debate adjourned.